Although it is full of opportunities, the decentralized finance industry(DeFi) faces many challenges, especially with regard to collaboration between different networks. This fragmentation makes it difficult to serve users across the industry.
In an interview with Cryptonews.com, Parallel Finance founder and CEO Yubo Ruan spoke about the problems associated with multiple chains. Ruan’s latest goal was to develop solutions to streamline DeFi segments, making them more accessible to users by improving connections between platforms.
Ruan said: “There is a huge increase in the number of tier 2 and tier 1, which complicates the situation from the consumer’s point of view.” Ruan’s main concern was the overwhelming number of options and technical hurdles facing average users; he stressed the importance of solving these problems to move forward.
Today, the L2Beat site has about 30 unlaunched Layer 2s, but they are likely to release hundreds of L2s soon. “The same is true for Layer 1,” Ruan added. “ It just won’t work for customers.”
In addition, he mentioned ways in which developers can use the increasingly complex but powerful blockchain to manage the latest and even future technologies, such as artificial intelligence.
He added, “Crypto is the only way to provide a method to control artificial intelligence, especially on the data side.” “And in the long run, I think it will contribute to the security of artificial intelligence.”
He also discussed the Omni-Chain Parallel Finance solution as a response to industry fragmentation. The project aims to improve the Layer 2 (L2) landscape to make ecosystems more integrated and efficient.
Ruan announced: “Interoperability is not just a technical challenge; it’s about laying the groundwork for innovation in the DeFi space.” “Omni-Chain is designed to unlock this potential.” In January 2024, Parallel published an official document and unveiled the Omni-Chain Parallel Network project .
The CEO explained that the goal is for Omni-Chain to act as a bridge between different blockchain networks, simplifying the interaction between them. It will revolutionize the DeFi experience with native support for intent-based execution and abstraction of ERC4337 accounts .
Omni-Chain leverages the strengths of different blockchains, enabling seamless transactions and interactions without the typical barriers users face today.
Parallel Network was the first Layer 2 to be launched with an Arbitrum license and leveraged the competitive performance and execution environment of the network, in addition to using Optimistic Rollup, to improve performance.
For network aggregation, Parallel Network plans to deploy L2 cleared on multiple chains, including Ethereum and Bitcoin. In addition, a wide range of network adoption options would enhance betting management capabilities.
The project’s white paper predicts that the company’s Omni-Chain Parallel will reduce user expenses by sponsoring gas fees for qualifying transactions. The company is trying to create a new business model in which the source of revenue will not depend solely on fees.
Parallel Finance, which was founded in 2021, has secured about $31 million in all funding rounds and is valued at $500 million in 2022.
